Regional Workshop on MAP on Decent work in ASIA
28 -30 June 2010 Bangkok, Thailand
Kabir Uddin Ahmed Deputy Director Bangladesh Bureau of Statistics Outline of Presentation
• Bangladesh at a glance • System of Official Statistics in Bangladesh • Key findings from LFS 2005-06 • Informal Sector Survey (ISS) 2009-10 • Methodology of the ISS survey • Challenges Bangladesh
Bangladesh, officially the People's Republic of Bangladesh is a country in South Asia . It is bordered by India on three sides (east,west,south). Myanmar to the southeast. the Bay of Bengal forms the southern coastline. System of Official Statistics in Bangladesh
Ministry of Planning (Hon' able Minister) - Bangladesh Bureau of Statistics, the NSO of Statistics Division (Secretary) Bangladesh - Centralized in the Bangladesh Bureau of (Director General) Statistics Bangladesh Bureau of
Agriculture Wing (Director) Statistics (BBS).
Census Wing (Director) - Established in 1974 under the Ministry of Computer Wing (Director) Planning. Demography and (Director) Health Wing - Comprises 7(seven) FA and MIS Wing (Joint Director) functional wings and Industry and Labour Field Offices 2-tyre field offices. Wing (Director) Regional Statistical Office (Statistical National Accounting (Director) (23) Officer) wing Upazilla Statistical Office (Statistical (489) Officer) Labor Force Profile: Bangladesh, 2005-06
Labor Force Frequency Percentage* Characteristic Employed 47,356,591 95.68 Employee 6,566,414 13.27 Employer 130,095 0.26 Self-employed 19,844,562 40.09 Unpaid worker 10,267,496 20.74 Wage worker 10,548,024 21.31 Unemployed 2,137,672 4.32 In labor force 49,494,263 100.00 * percent to total labor force Informal employment Profile
Frequency Distribution of Workers in Bangladesh, By Nature of Employment, Division and Locality
Nature of Employment Area Total Formal Informal
Division Chittagong 1,415,581 7,782,386 9,197,967 Dhaka 2,483,181 12,211,304 14,694,485 Variable Estimate Khuha 488,485 5,069,714 5,558,199 Employed 47,356,591 Rajshahi 763,399 10,202,852 10,966,251 Barisal 355,552 3,029,563 3,385,115Unemployed 2,137,672 Sylhet 312,383 3,242,190 3,554,574Labor Force 49,494,263 Total 5,818,582 41,538,009 47,356,591
Locality Rural 2,899,327 33,232,904 36,132,231 Nature of % Urban 931,116 4,223,014 5,154,130 employment SMA 1,988,139 4,082,092 6,070,230 Informal 87.71 Total 5,818,582 41,538,009 47,356,591 Formal 12.29 LFS 2005-06: Mean wage by industry
Mean Wage, by Industry: Formal vs Informal Taka 9000 formal 8000 informal 7000
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0 Agri Fishing Mining Mfg EGW Const WRT Hotels TCS Other Comm Industry LFS 2005-06: Mean wage by sex
Mean Wage by Gender Taka 7000 Male 6000 Fem ale 5000
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0 ALL Formal Informal Distribution of workers in selected industries by nature of employment
Chart 1. Percentage Distribution of Workers in Selected Industries in Bangladesh, By Nature of Employment
Informal Formal
n n n ry g g n ds atio atio atio est hin ryin ctio ol di str uc for Fis ar tru eh me ini Ed g/ /qu ns ous ter dm ntin ing Co h l in a hu in ate cia blic ri/ M riv an Pu Ag P Fin RETA 6430: Measuring the Informal Sector
• Asian Development Bank (ADB) – Measuring the Informal Sector – Three countries – Armenia, Bangladesh, Indonesia – Inception workshop conducted in September 2008
• Contribute to the increase in evidence-based policy making for poverty reduction – By helping NSOs acquire a sound strategy for collecting data on the informal sector – By exploring the processes to integrate informal sector data into national accounts data compilation framework – By studying the links between poverty and the informal sector RETA 6430: Measuring the Informal Sector
• Develop a unifying definition of the informal sector • Formulate an integrated data collection methodology • Design implementation strategy and tools for data collection, processing and analysis ISS : in a nutshell
• Inception workshop : September 2008 • Memorandum of Understanding: 2009 • Development of Master sample: 2009 • Data collection : April - May 2010 • Manual editing and coding : June 2010 • Data Processing and analysis : July-September 2010 • Workshop on major findings : October 2010 • Report : December 2010 Why Informal sector survey 2009-10
• In general, there is very limited data on the informal sector – In a country, what is the informal sector’s contribution to economic growth? – What is the trend? Is it increasing? • Where data is, or becomes available … – How are these being analyzed? – … and made available for policy use? – How to make these internationally comparable? • Limited comparable data on the informal sector (employment, contribution to GDP) General design strategy
Phase 1 Phase 2
Expanded HUEM Screening Module HUEMs Labor Force Survey Survey
Households/Individuals Production Units (HUEMs) MIXED SURVEY APPROACH
– The sampling strategy for the HUEM Survey incorporates a mixed survey approach.
– First Phase : Expanded LFS (includes questions about informal employment and screening questions to identify HUEMs)
– Second Phase : HUEM Survey (possible sampling strategies: (i) all HUEMs identified in phase 1 are interviewed ; or (ii) sub-sampling is implemented Data Collection methodology
Employment Poverty status Capital formation Policy-related issues Policy-related issues HUEM identification
Household Enterprises
Producing at least some goods & services Producing goods & services for market for own final use
Non-agricultural Agricultural Goods Services Agriculture, Paid domestic forestry, fishing services
Formal Informal Formal Informal sector sector sector sector Other activities Owner occupied dwelling services
Household Unincorporated Enterprises with some Market Production (HUEMs) Development of new Master Sample
Sampling the EAs were used as PSUs; small EAs were merged Frame Survey the geographic divisions serve as survey domains Domain Sample Size 1500 PSUs, 20 HH/PSU were sampled
Stratification Urbanity ; proportion of HH whose main source of income is agriculture; and proportion of HH whose dwellings were made of strong materials Sample uniform selection probabilities within domain are Selection maintained Development of new Master Sample
Division Number of PSUs Barisal 182 Chittagong 246 Dhaka 370 Khulna 210 Rajshahi 314 Sylhet 178 Total 1500 Selection of PSUs by Division in Phase-1 & Phase-2 Rural Urban Total
Division 1 2Phase 31(LFS) 4 1 2
Barisal 42 38 39 37 15 11 182 Chittagong 50 47 46 40 36 27 246 Dhaka 65 58 63 58 67 59 370 Khulna 41 44 41 42 22 20 210 Rajshahi 69 67 69 63 25 21 314 Sylhet 39 40 39 38 11 11 178 Total 306 294Phase 297 2 278 176 149 1500
Barisal 42 38 13 12 15 11 131 Chittagong 50 47 15 13 36 27 188 Dhaka 65 58 21 19 67 59 289 Khulna 41 44 14 14 22 20 155 Rajshahi 69 67 23 21 25 21 226 Sylhet 39 40 13 13 11 11 127 Total 306 294 99 92 176 149 1116 Identification of Informal sector & Informal employment
To Identify Informal sector:
– Household unincorporated enterprises with less than 10 persons engaged in the activity/establishment and – without complete set of accounts Identification of Informal sector & Informal employment
The informal workers were surmised to be: • all those who identified themselves to be unpaid family workers, irregular paid workers, day laborers in agriculture/non-agriculture, domestic workers, and paid/unpaid apprentices; • all workers employed in the personal household sector; • paid employees working in the formal sector and are NOT paid weekly or monthly; • paid employees working in personal establishments and “others” sectors; and • employers, self employed workers, and “other” workers employed in businesses with NO written accounts and/or are NOT registered with the proper authorities. Inclusion & exclusion of issues in ISS: Bangladesh considerations
Sl Description of Issues 1 HUEMs that are located outside the PSU Included 2 LFS is not linked to HIES, to determine Questions poverty status in the expanded LFS (Form-1) included to enable employment poverty analysis 3 HUEMs that are identified by employees– Excluded because these HUEMs are also owned by households who also have a chance of being selected. 4 Agriculture sector Included 5 Secondary job Included 6 Professional/technical persons Excluded Challenges
• Concepts and definitions are new; • Survey approach (mixed) is new; • Excessive workload for the enumerators; • Provide incomplete/misleading data